I see why people don't insure their cars now
Discussion
Pig benis said:
I didn't expect so many replies.
Some helpful and interesting information in here guys.
Up until the start of this year I had a 1991 Defender 90 and a modified Subaru Impreza, both have been my cheapest cars to insure. I believe the Subaru was sub £350 and the Defender was sub £300. Which is why I am so surprised the insurance on my E91 330D is £500.
Today I have been playing with insurance quotes and have managed to get some quotes for a 240i @ £410. I have wanted to change the 330D for a few months, so this is definitely food for thought.
Some of you look at insurance differently to me, as I don't look at the daily / weekly / monthly cost. I pay for my insurance in lump sums, as I'm not a pay monthly kind of guy. But I now totally appreciate looking at the increase in a daily amount, it seems like of a jump in cost.
Also, others have mentioned how a job will affect the premium. I work in IT, surely this is a low-risk job? Firstly I work from home a lot (so barely any driving at peak times) and secondly, we aren't known for crazy parties and long night benders in town. Which I am guessing would make the risk quite low??
Thanks all
PB
You would actually consider changing your car to save £90 on insurance? Some helpful and interesting information in here guys.
Up until the start of this year I had a 1991 Defender 90 and a modified Subaru Impreza, both have been my cheapest cars to insure. I believe the Subaru was sub £350 and the Defender was sub £300. Which is why I am so surprised the insurance on my E91 330D is £500.
Today I have been playing with insurance quotes and have managed to get some quotes for a 240i @ £410. I have wanted to change the 330D for a few months, so this is definitely food for thought.
Some of you look at insurance differently to me, as I don't look at the daily / weekly / monthly cost. I pay for my insurance in lump sums, as I'm not a pay monthly kind of guy. But I now totally appreciate looking at the increase in a daily amount, it seems like of a jump in cost.
Also, others have mentioned how a job will affect the premium. I work in IT, surely this is a low-risk job? Firstly I work from home a lot (so barely any driving at peak times) and secondly, we aren't known for crazy parties and long night benders in town. Which I am guessing would make the risk quite low??
Thanks all
PB
swagmeister said:
As Ive said on here before iots the compensation culture coming back to bite us. Also the demands of when a claim is made a comparative courtesy car is demanded and not a VW Lupo or suchlike, the demand that only OEM parts are used blah blah blah. We all hate paying insurance but look at the bigger picture.
I completely agree with all of this.swagmeister said:
Say your car is worth for example £10k and someone is willing to take the risk of having to fork out in a claim you make - they will accept £500 to cover that risk - would you take that risk ??
This part, I think is irrelevant. You can't think of it on an individual basis if you are offering insurance.If someone has an asset that they cannot afford to replace should they lose it, e.g. car or house, then the business opportunity is for someone who can afford to replace it to take that risk for you, for a fee which makes it worth their while. That's the foundation of the insurance industry. It's also why it's cheaper, in the long run, not to insure something that you can afford to replace... e.g. a mobile phone.. hard as it may be to swallow the one big hit when you smash your £600 iPhone XVIIISportPlus whatever.
For insurance to work as a business, the insured customers must spend more on premiums than they generate in damages - obviously. However, for this to work, for both parties, the risk needs to be spread over thousands of customers.
With thousands of insured customers, you're expecting the occasional big bill and have planned for that in the distribution of the premiums. £500 would work because, while one crash may generate a 30k bill, there will be a hundred customers who generate no claims at all.
So no, £500 isn't cheap because it looks great next to an individual's maximum potential bill, or value of their asset. Instead it looks like a worthwhile profit when compared to the overall bill your thousands of customers can be, quite accurately, predicted to generate.
Back on topic, I see a lot of posts saying they think £500 sounds fine and the OP should just suck it up or get another car etc. None of these address why the OP, last year, could run the car for just over £300, hasn't mentioned a change of address or an accident or anything else that may affect his premium, and yet has seen a rise of nearly 40%.
The rise is generated, most likely automatically, but has he really become that much riskier in 12 months? If so, why? Did crime go up in the area? Did a bunch of 330D drivers suddenly start crashing?
In the OP's case I'd be tempted to try putting different post codes and different models of car in the quote generator just to see what's made him riskier... or has insurance just got that much more costly in 1 year.....
EDIT: Ah, just read the op's post above mine. It's not a comparison to last year. It's a comparison to a different car. So yeah, no big mystery there then.
Last time I was looking at leasing, everything from a Golf to a Ghibli was coming in at £50 either side of £500.00, so if youre over 35 I reckon you could probably go to something more exotic/ powerful and the premium wouldn’t rise, its probably just your postcode and occupation driving it up.
GetCarter said:
Terminator X said:
When the fine for having no insurance is less than the cost of having it you can see why some folk don't bother.
Except of course you get your car seized, a fine, get 6 points (increasing your premium massively) and possibly a driving ban.Best insure the car folks.
GetCarter said:
Terminator X said:
When the fine for having no insurance is less than the cost of having it you can see why some folk don't bother.
Except of course you get your car seized, a fine, get 6 points (increasing your premium massively) and possibly a driving ban.Best insure the car mate.
Edited by GetCarter on Tuesday 9th July 15:00
Countdown said:
GetCarter said:
Terminator X said:
When the fine for having no insurance is less than the cost of having it you can see why some folk don't bother.
Except of course you get your car seized, a fine, get 6 points (increasing your premium massively) and possibly a driving ban.Best insure the car mate.
Edited by GetCarter on Tuesday 9th July 15:00
julian64 said:
Yep you see the threads on PH all the time.
If a person thinks they are a victim in an accident they don't try and mitigate costs, they do the complete opposite
Push for best hire car. Involve costly middle men called accident management companies. Ready to claim for any out of pocket expenses or any injury. Want any rise in their insurances costs paid for by whomever hit them.
.
They can't seem to put two and two together, and never seem to wonder where all the money comes from..
What amazes me is the insurance companies seem to want people to use claims handling organisations that only ever seem to add cost.If a person thinks they are a victim in an accident they don't try and mitigate costs, they do the complete opposite
Push for best hire car. Involve costly middle men called accident management companies. Ready to claim for any out of pocket expenses or any injury. Want any rise in their insurances costs paid for by whomever hit them.
.
They can't seem to put two and two together, and never seem to wonder where all the money comes from..
The only answer I can see is that they don't really care about the increase in cost of claims as it just gets passed onto the customers in increased pricing anyway so there isn't any real motivation to keep costs down??? Sounds bonkers but I don't see any other explanation... Am open to suggestions though as it really puzzles me.
Hungrymc said:
julian64 said:
Yep you see the threads on PH all the time.
If a person thinks they are a victim in an accident they don't try and mitigate costs, they do the complete opposite
Push for best hire car. Involve costly middle men called accident management companies. Ready to claim for any out of pocket expenses or any injury. Want any rise in their insurances costs paid for by whomever hit them.
.
They can't seem to put two and two together, and never seem to wonder where all the money comes from..
What amazes me is the insurance companies seem to want people to use claims handling organisations that only ever seem to add cost.If a person thinks they are a victim in an accident they don't try and mitigate costs, they do the complete opposite
Push for best hire car. Involve costly middle men called accident management companies. Ready to claim for any out of pocket expenses or any injury. Want any rise in their insurances costs paid for by whomever hit them.
.
They can't seem to put two and two together, and never seem to wonder where all the money comes from..
The only answer I can see is that they don't really care about the increase in cost of claims as it just gets passed onto the customers in increased pricing anyway so there isn't any real motivation to keep costs down??? Sounds bonkers but I don't see any other explanation... Am open to suggestions though as it really puzzles me.
red_slr said:
You would actually consider changing your car to save £90 on insurance?
Yep - I have already spoken to the Mrs about changing the car for a cheaper to insure model. So far she hasn't suspected a thing. All seriousness though, I do so many short trips that I can't help but think I will knacker the DPF and other sensitive diesel components, which is why I have been thinking of selling the 330D for a petrol car. Don't get me wrong, the 330D is fantastic but it seems completely wasted for my needs.
swagmeister said:
Never read so much garbage in my life. How on earth do you know his premium looks high ? Do you know his . . .
Postcode
Occupation
Claims
Convictions
Additional Drivers
Claim History
etc
etc etc
What I meant was it seems a little high based on what the previous years insurance cost was assuming his circumstances were the same, my insurance usually goes down year on year unless I change cars.Postcode
Occupation
Claims
Convictions
Additional Drivers
Claim History
etc
etc etc
And why be so rude, I'm not rude to you
Edited by wilksy61 on Tuesday 9th July 16:06
GetCarter said:
Terminator X said:
When the fine for having no insurance is less than the cost of having it you can see why some folk don't bother.
Except of course you get your car seized, a fine, get 6 points (increasing your premium massively) and possibly a driving ban.Best insure the car mate.
Edited by GetCarter on Tuesday 9th July 15:00
TX.
Countdown said:
MrBen1 said:
In other words - I don't drive uninsured because, on top of the illegality, I don't want to lose my house/cars etc because I just put somebody in a wheelchair. If you have little to lose, you have less to protect.
Indeed - whereas if you're a scrote on benefits you'll end up paying 25p a week.Perhaps if the Courts started crushing uninsured cars/drivers that might discourage gaming of the system?
TX.
rossub said:
TG105 said:
£500 is £10 a week. You’d spend that on one meal, a few beers etc. Think of what the insurance covers you for, aside from the illegality. It not really that bad, is it?
Things really have gone to s
t in this country when people are breaking insurance down into a weekly cost. It was bad enough at monthly.It’s an easy way to explain that £500 isn’t a lot as it’s easy for most people to relate to.
It’s also an example of a problem with a relatively simply explanation and solution, but yet here we are.
GetCarter said:
...and just to put in perspective. I have two cars worth >£85k fully comp, protected no claims and it's just over £340 a year.
It's all about where you live and your driving history. 40+ years, no claims.
Don’t disagree with this, it’s also the car to an extent. Something common (like a 330d) gets crashed a lot in comparison to something rare. It's all about where you live and your driving history. 40+ years, no claims.
Edited by GetCarter on Tuesday 9th July 16:17
OP - while the plural of anecdote is not data, the ‘facts’ below are real for my experience.
Last year I bought a 330d e92 to export to Cyprus. Obviously I had to insure it first while still in the UK. At the time I was with AXA for the M6 and the 760. The 330d was more expensive than either of those, even though it’s half the power. There’s only something like 500 M6 and 120 760 in the country, so there’s relatively few accidents involving them in any given year to aggregate against. There’s 1000’s of 330d, so there are more accidents.
It’s all data at the end of the day. Getting old helps, the job you do impacts it, the car you drive impacts it. The biggest one for me is postcode - I live on the M62 corridor and can insure ‘anything’ within reason for around 500. If I use my details but my sister’s address in Chelmsford (so CM2 rather than OL11), it’s 200. It costs me similar for a Corsa as it does the M6. I’m not the risk per-se, where I live is the biggest factor. YMMV might vary of course.
Prinny said:
Don’t disagree with this, it’s also the car to an extent. Something common (like a 330d) gets crashed a lot in comparison to something rare.
OP - while the plural of anecdote is not data, the ‘facts’ below are real for my experience.
Last year I bought a 330d e92 to export to Cyprus. Obviously I had to insure it first while still in the UK. At the time I was with AXA for the M6 and the 760. The 330d was more expensive than either of those, even though it’s half the power. There’s only something like 500 M6 and 120 760 in the country, so there’s relatively few accidents involving them in any given year to aggregate against. There’s 1000’s of 330d, so there are more accidents.
It’s all data at the end of the day. Getting old helps, the job you do impacts it, the car you drive impacts it. The biggest one for me is postcode - I live on the M62 corridor and can insure ‘anything’ within reason for around 500. If I use my details but my sister’s address in Chelmsford (so CM2 rather than OL11), it’s 200. It costs me similar for a Corsa as it does the M6. I’m not the risk per-se, where I live is the biggest factor. YMMV might vary of course.
Postcode is key - my insurance quotes for SE8 were three times my insurance quotes in EH3. OP - while the plural of anecdote is not data, the ‘facts’ below are real for my experience.
Last year I bought a 330d e92 to export to Cyprus. Obviously I had to insure it first while still in the UK. At the time I was with AXA for the M6 and the 760. The 330d was more expensive than either of those, even though it’s half the power. There’s only something like 500 M6 and 120 760 in the country, so there’s relatively few accidents involving them in any given year to aggregate against. There’s 1000’s of 330d, so there are more accidents.
It’s all data at the end of the day. Getting old helps, the job you do impacts it, the car you drive impacts it. The biggest one for me is postcode - I live on the M62 corridor and can insure ‘anything’ within reason for around 500. If I use my details but my sister’s address in Chelmsford (so CM2 rather than OL11), it’s 200. It costs me similar for a Corsa as it does the M6. I’m not the risk per-se, where I live is the biggest factor. YMMV might vary of course.
TG105 said:
You can break a lot of motoring costs down into weekly costs. I’d bet most people describe their petrol spend in weekly terms.
It’s an easy way to explain that £500 isn’t a lot as it’s easy for most people to relate to.
It’s also an example of a problem with a relatively simply explanation and solution, but yet here we are.
I don't see how that's a solution. It costs you the same whether you look at it weekly, monthly or annually. If that works, then you could feel even more comfortable by saying it's only £1.43 a day... or 6p per hour..It’s an easy way to explain that £500 isn’t a lot as it’s easy for most people to relate to.
It’s also an example of a problem with a relatively simply explanation and solution, but yet here we are.
There's only so many £10 per week bills you can add before you've used up your weekly excess... and for most people, "so many" really isn't very many at all, and most won't be particularly excited about swapping a meal a week for car insurance.
kiseca said:
TG105 said:
You can break a lot of motoring costs down into weekly costs. I’d bet most people describe their petrol spend in weekly terms.
It’s an easy way to explain that £500 isn’t a lot as it’s easy for most people to relate to.
It’s also an example of a problem with a relatively simply explanation and solution, but yet here we are.
I don't see how that's a solution. It costs you the same whether you look at it weekly, monthly or annually. If that works, then you could feel even more comfortable by saying it's only £1.43 a day... or 6p per hour..It’s an easy way to explain that £500 isn’t a lot as it’s easy for most people to relate to.
It’s also an example of a problem with a relatively simply explanation and solution, but yet here we are.
There's only so many £10 per week bills you can add before you've used up your weekly excess... and for most people, "so many" really isn't very many at all, and most won't be particularly excited about swapping a meal a week for car insurance.
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